Borrowing to buy a car

F

filthy lucre

Guest
Anyone come across any good car finance deals recently

I am looking to borrow approx €35K
My best quote so far is BOI at 6% APR for a 5yr fixed term loan

FL
 
This is probably not what you want to hear, but I think you would be crazy to borrow €35k to spend on a car. If you don't have this money saved, then buy a much, much cheaper car and start building up some savings. Your €35k loan will cost you €2k in interest per annum, or €10k over the lifetime of a 5 year loan. As a BOI shareholder, I'd be delighted to see you making such a generous contribution to our profits.

By opting for a fixed rate loan, you are gambling that rates will increase over the life of the loan, and eliminating any flexibility you may have for making additional payments and/or paying off the loan early without penalty.
 
Opel are doing a 0% finance over 3 years on a maximum of 50% of the cost. Doesn't sound like you are after an Opel though.

Slim 8)
 
The best quotes for 40K over 5 years I have managed to get so far is

BoI - 6% - €767 pm = €46020 ie €6,020 cost of credit
and
AIB (Finance & Leasing) 5.41% - €760 pm = €45600 ie €5,600
cost of credit (i got this rate through my branch manager - its not a standard / published rate)

seems that the higher the amount the better rate you can get assuming you have a good credit rating etc ...

has anyone seen any better rates than this ?
 
€19 per thousand borrowed ( your AIB quote ) is the cheapest I have ever seen by a long way. Just have a look at some of the repayments here ! Are some of them serious???

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Please post if you find anything cheaper than 19 euro per thousand borrowed, as will I. I intend changing in the new year and will be looking at similar borrowings.
 
Be careful when comparing loans based on cost per thousand or rates that you calculate yourself. The only really reliable way to compare loans from different sources is by reference to the quoted APRs.
 
Clubman,

Why so ? I'm not trying to be picky but the cost per thousand allows you to calculate the precise cost of credit over a given repayment period and so is more accurate as a measure of the true cost of funds. You can have the same APR and different amounts per thousand borrowed - just take a look at this table

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It's no different for car loans.
 
APR represents the true and total cost of a loan and may include costs not included in the cost per thousand (e.g. application fees etc.). There was a long discussion about APR here a while back but I can't find it right now. However might also be of use?
 
I still have a problem . The doc. fee naturally has to be added to the total cost of funds. However if two banks are offering the same APR ( as is the case in several examples in the table in my post above ) how do you work out which is the cheapest loan ?
 
for that amount, is a short term equity release not a better idea. (im assuming that you at least own a house if you are spending that cash on a car)
 
I don't know if they still do it but AIB used to require a month or two of payments up front (i.e. before they gave you the cheque.

This meant you were effectively borrowing less.

e.g. borrow 20,000, but pay them 1200 up front.
You're actually borrowing 18800.

When you shop around to other banks you'd need to compare
borrowing 18800, not 20,000.

It still worked out cheaper with AIB a few years ago when I was looking at this, but it's a bit annoying to have to come up with cash in order to get a loan.

-Rd
 
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